Critical Factors Influencing the Behavioral Intention of Consumers towards Mobile Banking in Malaysia


  • Z. U. Rehman Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Malaysia
  • F. A. Shaikh Department of Economics, University of Sindh, Pakistan
Volume: 10 | Issue: 1 | Pages: 5265-5269 | February 2020 |


Mobile banking services are widely adopted in developed and developing countries, while their adoption by Malaysian consumers is relatively low. The effective adoption of mobile banking mostly depends on consumers. This study’s objective was to examine the factors that influence Malaysian customers’ behavioral intention toward mobile banking. A detailed literature review was conducted in order to identify the critical factors that affect mobile banking users. The research model was based on the Technology Acceptance Model, investigating the additionally perceived risk. Primary data were collected from 384 generation Y bank customers. Structure equation modeling through Smart-PLS was used for data analysis. Results revealed that consumers’ behavioral intention was significantly and positively influenced by perceived usefulness and ease of use, while a significant negative relationship was found between consumers’ behavioral intention and perceived risk. The findings also revealed a mediating relationship of attitude between perceived usefulness, ease of use and risk, and behavioral intention to use mobile banking. The study provides appropriate guidelines to Malaysian banks and mobile banking application developers for the effective implementation and design of mobile banking services.


mobile banking adoption, technology acceptance model, perceived risk, generation Y, Malaysia


Download data is not yet available.


M. H. Koksal, “The intentions of Lebanese consumers to adopt mobile banking”, International Journal of Bank Marketing, Vol. 34, No. 3, pp. 327–346, 2016 DOI:

A. Shaikh, H. Karjaluoto, “Mobile banking adoption: a literature review”, Telematics and Informatics, Vol. 32, No. 1, pp. 129–142, 2015 DOI:

M. N. Engwanda, Factors affecting mobile banking adoption in the United States, PhD Thesis, Walden University, 2014

E. Slade, M. Williams, Y. Dwivdei, “Extending UTAUT2 to explore consumer adoption of mobile payments”, UKAIS 2013 - UK Academy for Information Systems 18th Annual Conference 2013, Oxford, UK, March 18-20, 2013

Q. Yang, C. Pang, L. Liu, D. C. Yend, J. M. Tarn, “Exploring consumer perceived risk and trust for online payments: an empirical study in China’s younger generation”, Computers in Human Behavior, Vol. 50, pp. 9–24, 2015 DOI:

S. K. Roy, M. S. Balaji, A. Kesharwani, H. Sekhon, “Predicting internet banking adoption in India: a perceived risk perspective”, Journal of Strategic Marketing, Vol. 25, No. 5–6, pp. 418–438, 2016 DOI:

R. Glavee-Geo, A. A. Shaikh, H. Karjaluoto, “Mobile banking services adoption in Pakistan: are there gender differences?”, International Journal of Bank Marketing, Vol. 35, No. 7, pp. 1090–1114, 2017 DOI:

F. Kanwal, M. Rehman, K. Bashir, U. Qureshi, “Critical factors of e-learning adoption and acceptance in Pakistan: a literature review”, Engineering, Technology & Applied Science Research, Vol. 7, No. 4, pp. 1888–1893, 2017 DOI:

A. Shanmugam, M. T. Savarimuthu, T. C. Wen, “Factors affecting Malaysian behavioral intention to use mobile banking with mediating effects of attitude”, Academic Research International, Vol. 5, No. 2, pp. 236–253, 2014

D. Mehrad, S. Mohammadi, “Word of mouth impact on the adoption of mobile banking in Iran”, Telematics and Informatics, Vol. 34, No. 7, pp. 1351–1363, 2016 DOI:

Juniper Research, “Mobile banking users to reach 2 billion by 2020, representing more than 1 in 3 of global adult population”, Juniper Research, 2016, available at:


Malaysian Communications and Multimedia Commission, Internet users survey 2017, MCMC, 2017

M. Cheah, A. C. Teo, J. J. Sim, K. H. Oon, B. I. Tan, “Factors affecting Malaysian mobile banking adoption: an empirical analysis”, International Journal of Network and Mobile Technologies, Vol. 2, No. 3, pp. 149–160, 2011

Bank Negara Malaysia, Internet Banking and Mobile Banking Subscribers (end of period), Bank Negara Malaysia, 2019

S. M. Shuhidan, S. R. Hamidi, I. S. Saleh, “Perceived risk towards mobile banking: A case study of Malaysia young adulthood”, IOP Conference Series: Materials Science and Engineering, Vol. 226, No. 1, 2017 DOI:

Y. M. Low, C. F. Goh, O. K. Tan, A. Rasli, “Users’ loyalty towards mobile banking in Malaysia”, Journal of Internet Banking and Commerce, Vol. 22, No. S7, pp. 1–12, 2017

H. Kim, D. K. Knight, C. Crutsinger, “Generation Y employees’ retail work experience: the mediating effect of job characteristics”, Journal of Business Research, Vol. 62, No. 5, pp. 548–556, 2009 DOI:

E. Tan, J. Leby Lau, “Behavioural intention to adopt mobile banking among the millennial generation”, Young Consumers, Vol. 17, No. 1, pp. 18–31, 2016 DOI:

M. van Deventer, N. de Klerk, A. Bevan-Dye, “Antecedents of attitudes towards and usage behavior of mobile banking amongst Generation Y students”, Banks and Bank Systems, Vol. 12, No. 2, pp. 78–90, 2017 DOI:

J. Puschel, J. A. Mazzon, J. M. C. Hernandez, “Mobile banking: proposition of an integrated adoption intention framework”, International Journal of Bank Marketing, Vol. 28, No. 5, pp. 389–409, 2010 DOI:

M. Purwanegara, A. Apriningsih, F. Andika, “Snapshot on Indonesia regulation in mobile internet banking users attitudes”, Procedia - Social and Behavioral Sciences, Vol. 115, pp. 147–155, 2014 DOI:

T. Zhou, “Examining location-based services usage from the perspectives of unified theory of acceptance and use of technology and privacy risk”, Journal of Electronic Commerce Research, Vol. 13, No. 2, pp. 135–144, 2012

A. Alalwan, Y. K. Dwivedi, N. P. P. Rana, M. D. Williams, “Consumer adoption of mobile banking in Jordan: examining the role of usefulness, ease of use, perceived risk and self-efficacy”, Journal of Enterprise Information Management, Vol. 29, No. 1, pp. 118–139, 2016 DOI:

P. Hanafizadeh, M. Behboudi, A. A. Koshksaray, M. J. S. Tabar, “Mobile-banking adoption by Iranian bank clients”, Telematics and Informatics, Vol. 31, No. 1, pp. 62–78, 2014 DOI:

H. F. Lin, “An empirical investigation of mobile banking adoption: The effect of innovation attributes and knowledge-based trust”, International Journal of Information Management, Vol. 31, No. 3, pp. 252–260, 2011 DOI:

F. D. Davis, “Perceived usefulness, perceived ease of use, and user acceptance of information technology”, MIS Quarterly, Vol. 13, No. 3, pp. 319–340, 1989 DOI:

K. Phan, T. U. Daim, “Exploring technology acceptance for mobile services”, Journal of Industrial Engineering and Management, Vol. 4, No. 2, pp. 339–360, 2011 DOI:

M. J. Succi, Z. D. Walter, “Theory of user acceptance of information technologies: an examination of health care professionals”, 32nd Annual Hawaii Conference on Systems Sciences, Maui, USA, January 5-8, 1999

C. Tam, T. Oliveira, “Literature review of mobile banking and individual performance”, International Journal of Bank Marketing, Vol. 35, No. 7, pp. 1044–1067, 2017 DOI:

V. Venkatesh, “Determinants of perceived ease of use: integrating control, intrinsic motivation and emotion into the technology acceptance model”, Information Systems Research, Vol. 11, No. 4, pp. 342–365, 2000 DOI:

C. Teo, G. W. H. Tan, C. M. Cheah, K. B. Ooi, K. T. Yew, “Can the demographic and subjective norms influence the adoption of mobile banking?”, International Journal of Mobile Communications, Vol. 10, No. 6, pp. 578–597, 2012 DOI:

A. Alalwan, Y. K. Dwivedi, N. P. Rana, “Factors influencing adoption of mobile banking by Jordanian bank customers: Extending UTAUT2 with trust”, International Journal of Information Management, Vol. 37, No. 3, pp. 99–110, 2017 DOI:

M. Kleijnen, M. Wetzels, K. De Ruyter, “Consumer acceptance of wireless finance”, Journal of Financial Services Marketing, Vol. 8, No. 3, pp. 206–217, 2004 DOI:

S. Chen, “Perceived risk, usage frequency of mobile banking services”, Managing Service Quality: An International Journal, Vol. 23, No. 5, pp. 410–436, 2013 DOI:

N. Koenig-Lewis, A. Moll, “Predicting young consumers’ take up of mobile banking services”, International Journal of Bank Marketing, Vol. 28, No. 5, pp. 410–432, 2010 DOI:

S. H. Silva Bidarra, F. Munoz-Leiva, F. Liebana-Cabanillas, “The determinants of mobile banking acceptance: conceptual development and empirical analysis”, International Journal of Management Science & Technology Information, No. 8, 2013

F. Munoz-Leiva, S. Climent-Climent, F. Liebana-Cabanillas, “Determinants of intention to use the mobile banking apps: an extension of the classic TAM model”, Spanish Journal of Marketing - ESIC, Vol. 21, No. 1, pp. 25–38, 2017 DOI:

R. A. Ali, M. R. M. Arshad, “Perspectives of students’ behavior towards mobile learning (m-learning) in Egypt: an extension of the UTAUT model”, Engineering Technology and Applied Science Research, Vol. 6, No. 4, pp. 1109–1114, 2016 DOI:

C. Makanyeza, “Determinants of consumers’ intention to adopt mobile banking services in Zimbabwe”, International Journal of Bank Marketing, Vol. 35, No. 6, pp. 997–1017, 2017 DOI:

P. Gerrard, B. Cunningham, “The diffusion of internet banking among Singapore consumers”, International Journal of Bank Marketing, Vol. 21, No. 1, pp. 16–28, 2003 DOI:

L. Wessels, J. Drennan, “An investigation of consumer acceptance of M-banking”, International Journal of Bank Marketing, Vol. 28, No. 7, pp. 547-568, 2010 DOI:

M. S. Shahbaz, S. Sohu, F. Z. Khaskhelly, A. Bano, M. A. Soomro, “A novel classification of supply chain risks: a review”, Engineering, Technology and Applied Science Research, Vol. 9, No. 3, pp. 4301–4305, 2019 DOI:

P. Surendran, “Technology acceptance model: a survey of literature”, International Journal of Business and Social Research, Vol. 2, No. 4, pp. 175–178, 2012

S. Guritno, H. Siringoringo, “Perceived usefulness, ease of use, and attitude towards online shopping usefulness towards online airlines ticket purchase”, Procedia – Social and Behavioral Sciences, Vol. 81, pp. 212–216, 2013 DOI:

X. Luo, H. Li, J. Zhang, J. P. Shim, “Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: An empirical study of mobile banking services”, Decision Support Systems, Vol. 49, No. 2, pp. 222–234, 2010 DOI:

M. J. Haider, G. Changchun, T. Akram, S. T. Hussain, “Does gender differences play any role in intention to adopt Islamic mobile banking in Pakistan? An empirical study”, Journal of Islamic Marketing, Vol. 9, No. 2, pp. 439–460, 2018 DOI:

L. Hsu, C. F. Wang, J. C. C. Lin, “Investigating customer adoption behaviours in mobile financial services”, International Journal of Mobile Communications, Vol. 9, No. 5, pp. 477-494, 2011 DOI:

G. Aydin, S. Burnaz, “Adoption of mobile payment systems: a study on mobile wallets”, Journal of Business Economics and Finance, Vol. 5, No. 1, pp. 73–92, 2016 DOI:

C. Changchit, R. Lonkani, J. Sampet, “Mobile banking: Exploring determinants of its adoption”, Journal of Organizational Computing and Electronic Commerce, Vol. 27, No. 3, pp. 239–261, 2017 DOI:

J. F. J. Hair, G. T. M. Hult, C. Ringle, M. Sarstedt, A primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), SAGE Publications, 2014

J. F. Hair, C. M. Ringle, M. Sarstedt, “Partial least squares structural equation modeling: rigorous applications, better results and higher acceptance”, Long Range Planning, Vol. 46, No. 1–2, pp. 1–12, 2013 DOI:

M. S. Shahbaz, R. Z. Rasi, M. H. Zulfakar, M. F. Ahmad, Z. Abbas, M. F. Mubarak, “A novel metric of measuring performance for supply chain risk management: drawbacks and qualities of good performance”, Journal of Fundamental and Applied Sciences, Vol. 10, No. 3S, pp. 967-988, 2018

M. S. Shahbaz, A. F. Chandio, M. Oad, A. Ahmed, R. Ullah, “Stakeholders’ management approaches in construction supply chain: a new perspective of stakeholder’s theory”, International Journal of Sustainable Construction Engineering and Technology, Vol. 9, No. 2, pp. 16–25, 2018 DOI:

R. Thakur, M. Srivastava, “Adoption readiness, personal innovativeness, perceived risk and usage intention across customer groups for mobile payment services in India”, Internet Research, Vol. 24, No. 3, pp. 369–392, 2014 DOI:

T. C. E. Cheng, D. Y. C. Lam, and A. C. L. Yeung, “Adoption of internet banking: an empirical study in Hong Kong”, Decision Support Systems, Vol. 42, No. 3, pp. 1558–1572, 2006 DOI:


How to Cite

Z. U. Rehman and F. A. Shaikh, “Critical Factors Influencing the Behavioral Intention of Consumers towards Mobile Banking in Malaysia”, Eng. Technol. Appl. Sci. Res., vol. 10, no. 1, pp. 5265–5269, Feb. 2020.


Abstract Views: 2917
PDF Downloads: 1218

Metrics Information

Most read articles by the same author(s)